The ongoing potential sale of Hulu has produced many rumours of whether it will be sold and who the video streaming platform might be going to, and it appears as though the latest of these is cable TV specialists Time Warner Cable (TWC), believed to be considering the acquisition of an ‘equity stake’ in Netflix’s biggest rivals.
The discussions are thought to be at ‘an early stage’, and with a deal between the two parties far from certain, the talks remain private, though a source notes that TWC may be facing some competition from another pay-TV company (whose identity remains a secret) in the race for Hulu ownership.
The move would be one which enables Time Warner Cable to gain Hulu’s impressive spate of advertising benefits and current 4 million+ subscribers to the ad-free Hulu Plus version (at $7.99 per month each), as well as offering a nation-wide alternative to the generally region-based cable platform.
BTIG analyst Rich Greenfield said of the potential for the move: “Hulu’s a great asset. Conditions like a national footprint will seem silly 10 years from now.”
Spokespeople for the respective parties have so far declined to comment. With plenty on offer, as proven by the recent Peter Chernin offer of $500m that was effectively laughed at by market experts, Time Warner Cable may have to be prepared to bid in the billions to get what they want, though big-name rival buyers such as Yahoo! are expected to be competing as well, raising the stakes even higher. As Amazon and Guggenheim Partners are also amongst those rumoured to be interested, anyone wanting a piece of Hulu (who have previously suggested that they are not desperate to sell) will have to pay out big-time, but how much above or below will that be when compared to the site’s true ‘value’?